SINGAPORE: The high sulphur fuel oil (HSFO) market in Asia remained under downward pressure on Tuesday as steady supply continued to arrive, including direct Middle Eastern barrels and indirect Russian inflows.
180-cst HSFO differentials were at discounts of $8.29 per tonne to Singapore quotes on Tuesday, widening versus discounts of $7.10 per tonne on Monday.
Meanwhile, 380-cst HSFO differentials were at premiums of $1.60 per tonne to Singapore quotes on Tuesday, declining from premiums of $3.17 per tonne on Monday.
Reflecting ample supply and thin demand, HSFO bunker fuel premiums at Singapore also demonstrated little recovery from the previous week.
Ex-wharf 380-cst HSFO bunker premiums continued to stagnate in single digits of around $5 per tonne over Singapore quotes, according to bunker fuel traders.
In contrast, ex-wharf premiums for 0.5% very low sulphur fuel oil (VLSFO) at Singapore stayed elevated at levels of more than $80 per tonne to Singapore quotes this week, as tight cargo availability supported prices for prompt loading dates.
Oil prices rose on Tuesday, clawing back more of last week’s losses as investors focused on tight supplies of crude and fuel products rather than concerns about a recession dampening demand going forward. The United States is in talks with Canada and other allies to further restrict Moscow’s energy revenue by imposing a price cap on Russian oil, Treasury Secretary Janet Yellen said on Monday.
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